Q1 GDP grows 1.8%; 2025 per capita income $36,963

South Korea's economy demonstrated robust growth in the first quarter of 2026, expanding by 1.8%. This figure represents an upward revision from the preliminary estimate, reflecting stronger-than-expected performance in key sectors. The growth rate year-on-year stood at 3.8%, indicating a solid recovery.

The expansion was fueled by several factors, including a significant increase in exports, which grew by 5.9%. This surge was particularly notable in IT products like semiconductors. Private consumption also contributed positively, rising by 0.6%, driven by increased spending on both goods and services. However, government consumption saw a slight decrease of 0.4%, mainly due to reduced healthcare spending.

On the production side, the manufacturing sector expanded by 3.9%, largely propelled by computer, electronic, and optical equipment. The construction industry also saw a healthy increase of 2.2%, with growth in both building and civil engineering projects. The service sector grew by 0.6%, supported by wholesale and retail trade, accommodation, food services, and financial and insurance activities.

Real Gross National Income (GNI), a measure of the total income earned by a nation's people, surged by 9.2% compared to the previous quarter and 13.2% compared to the same period last year. Nominal GNI saw even larger increases. The GDP deflator, a comprehensive price index, rose by 12.9% year-on-year. The national savings rate increased by 5.7 percentage points to 41.7%, while the domestic gross investment rate fell by 2.9 percentage points to 25.3%.

Looking at the full year 2025, South Korea's real GDP improved by 1.1% compared to the previous year, with nominal GDP reaching 2,676.7 trillion won, a 4.4% increase. The per capita GNI for 2025 was calculated at $36,963, equivalent to 52.57 million won, an increase of $108 from the previously announced figure.